Market Briefs (June 2-6, 2003)

9 June 2003

Paddy Power's Online Division has 150 Percent Growth

On June 3, Paddy Power plc (PAP) Chairman Fintan Drury told the company's shareholders that turnover in all channels has been strong during the past year.

Drury said the online betting division has shown 130 percent growth for the year to May 27, and telephone betting has grown 57 percent.

The comments were part of Drury's statement at the annual general meeting. For the year ending May 27, turnover in the betting offices in the United Kingdom and Ireland increased 28 percent. The group has 133 betting shops in Ireland and five offices in London.

Magna Ends Sale of Convertible Subordinated Notes

Magna Entertainment Corp. (MECA) said June 2 that it has completed its sale of $100 million aggregate principal amount of 8.55 percent convertible subordinated notes. The notes are due June 15, 2010.

The notes are convertible into shares of the company's class A subordinate voting stock at a conversion price of $7.05 per share. The notes are redeemable after June 2, 2006 at a price equal to the principal amount of the notes plus the accrued and unpaid interest at the date of redemption.

Magna Entertainment said the net proceeds from the offering are about 96.5 million, which the company plans to use for general corporate purposes including capital expenditures.

Peerless Hasn't Invested Yet

An investment company set up by Peter Wilkinson, founder of Sportingbet, has yet to invest in any companies, British media reported last week.

The company, Peerless Technology, was created to invest in media and technology. It floated on the Alternative Investment Market at the close of 2001, but its managing director, Jeremy Fenn, said it hasn't yet found a company that meets its investment criteria. Fenn was formerly the chief executive of Sports Internet, which was sold to British Sky Broadcasting.

"There are some interesting situations out there, we just haven't found the right thing," he said. "We will continue to be patient in the pursuit of suitable targets. We are confident that the difficult market conditions that still prevail will present investment opportunities for the company."

Penn National Gaming Conference Call June 10

Penn National Gaming Inc. (PENN) will hold a conference call to update financial guidance and discuss details of a plan to reduce operating costs at its Hollywood, Aurora property on June 10. The call will take place at 10 a.m. EST. To participate, call 212-896-6020 or 415-537-1950 five minutes before the call starts. A recording of the call will be available for one month on